Does COVID-19 state aid reach the right firms? COVID-19 state aid, turnover expectations, uncertainty and management practices

Groenewegen, Jesse; Hardeman, Sjoerd; Stam, Erik

doi:10.1016/j.jbvi.2021.e00262

Cited by 38 publications

(46 citation statements)

References 11 publications

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“…Kuchakov and Skougarevskiy ( 2021 ) find Russian COVID wage subsidies programme had no effects on the survival and profitability of SMEs. Groenewegen et al ( 2021 ) investigated the nature of the firms that received COVID‐19 government aid in the Netherlands. They report that aid mostly ended up at SMEs that were managed better.…”

Section: Background and Related Literaturementioning

confidence: 99%

Small firms amidst COVID‐19: Financial constraints and role of government support

2022

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The coronavirus disease 2019 has severely affected the financially constrained small and medium enterprises (SMEs).In response, various countries employed several policies to support SMEs. Using rich firm-level data from 34 countries, we study the impact of the pandemic-led crisis on cash-strapped SMEs and the role of governments in offsetting losses. Our results suggest that (i) government support programmes target mostly financially constrained firms; (ii) firms adjustments to the pandemic are associated with the likelihood of government support; (iii) financially constrained firms are more likely to lay off workers; and (iv) financially constrained firms layoff more male employees than female employees.

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Section: Background and Related Literaturementioning

confidence: 99%

Small firms amidst COVID‐19: Financial constraints and role of government support

2022

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“…In terms of relevance of support, available preliminary analyses covering only the first quarters of COVID-19 indicate that COVID-19 state aid tended to go to firms that are most in need of it [Luja, 2020;Groenewegen et al, 2021], which are overwhelmingly SMEs [Antonescu, 2020;Cowling et al, 2020]. According to OECD studies, this was mainly the case for SMEs.…”

Section: The Literature Reviewmentioning

confidence: 99%

Forms of COVID-19 state aid by beneficiary size in Poland in 2020

Ambroziak

2022

International Journal of Management and Economics

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Lockdowns imposed by the European Union (EU) Member States produced significant consequences in the form of losses to companies, which is why the Member States decided to assist businesses from public funds. This paper aims to identify and initially assess the implementation of schemes under which coronavirus disease-2019 (COVID-19)-related state aid was granted in Poland in 2020 for different instruments and beneficiary sizes. The idea was to find out how well aforementioned schemes responded to the needs of companies affected the most by the COVID-19-inflicted crisis. To this end, statistical analysis was deployed to learn about the share of individual groups of businesses of different sizes in support instruments granted in relation with COVID-19 by type of aid. The study helped to demonstrate that Polish aid schemes approved by the European Commission in 2020 assisted mainly micro- and small-sized companies, which usually suffered from poor liquidity, by predominantly soft instruments.

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“…Named Kurzarbeit in Germany and partial activity in France, these can take the form of short-time work (STW) schemes that directly subsidize hours not worked. Another variant of this scheme was used in the Netherlands, under the name Emergency Bridging Measure, with the payment of a wage subsidy, making it possible to maintain the workers' income even during periods when they are not working (see also [20]).…”

Section: Employment and Social Policy Measuresmentioning

confidence: 99%

Are Business Policy Measures in Response to the COVID-19 Pandemic to Be Equally Valued? An Exploration According to SMEs Owners’ Business Expectations

Tchinda

Dejardin

2021

Sustainability

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A variety of public economic policy measures have been designed and implemented in an effort to enable SMEs to limit damages resulting from the adverse sanitary and economic shocks associated with COVID-19. The originality of our study is to propose a rating of the various economic policy measures, the rating being expressed by SMEs owners conditional to their business expectations. In so doing, our contribution is to highlight the policy measures to be implemented in order to support resilient and ambitious ventures with the most positive prospects, which are likely to contribute the most to economic recovery. We exploit an original and rich dataset derived from a survey conducted in May 2020 among a representative sample of more than 2100 Belgian (Walloon) SMEs. The Belgian experience is remarkable because the wide variety of measures it undertook echoes many of the measures taken by OECD countries. Our results suggest that the respondents have an overall positive evaluation of the various economic and social policy measures implemented by the Belgian authorities. More importantly, the rating by SME owners with the most favorable expectations are, however, significantly different than their counterpart. Measures helping firms to maintain their workforce are particularly highly rated by firms with the best prospects. It also appears that those firms prefer short-term and transitory measures.

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Does COVID-19 state aid reach the right firms? COVID-19 state aid, turnover expectations, uncertainty and management practices

Cited by 38 publications

References 11 publications

Small firms amidst COVID‐19: Financial constraints and role of government support

Small firms amidst COVID‐19: Financial constraints and role of government support

Forms of COVID-19 state aid by beneficiary size in Poland in 2020

Are Business Policy Measures in Response to the COVID-19 Pandemic to Be Equally Valued? An Exploration According to SMEs Owners’ Business Expectations

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